3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

Finding Sub-contractors

These categories are:

  • Black female owned EME's or QSE's;
  • Black youth owned EME's or QSE's;
  • Black owned EME's or QSE's.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

Pages

Title Closing Date Tender No.
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Maiden Farm Township with a CIDB Grading of 4 EP or Higher 2019-02-11 12:00 036/2018/19
Appointment for (02) Electrical Contractors for Electrification of 193 infill Connections in Hillcrest Township with a CIDB Grading of 4 EP or Higher 2019-02-12 12:00 037/2018/19
Bid Specification for Appointment of a Programme Support Unit (PSU) for a three (3) year period to assist the Provincial Department of Education in various aspects of the management of its infrastructure programme. 2019-02-22 11:00 SCMU6-18/19-0007
Supply and Delivery of suction pipes - Honeysucker 2019-01-18 12:00 B424/2018/19
All prospective bidders are hereby invited to submit quotations for accommodation: bed, dinner, breakfast & conference package, supply chain management as specification appear below 2019-01-22 12:00 RFQFIN/01/2018/19
Development of an Implementation Plan and Budget for a Multi-Year History Festival in Plettenberg Bay 2019-01-18 13:00 SCM/RFQ/2019/042/EDP
Provision of Competency-Based Assessment Services for Senior Managers 2019-01-18 12:00 SCM/RFQ/2019/043/CORP
Supply and Delivery of Fire Extinguishers and Raingear 2019-01-17 12:00 B422/2018/19
Supply and delivery of Building Sand 24 cubes 2019-01-17 12:00 B423/2018/19
Procurement of Pre-qualification of Construction Contract: Construction of Polihali Dam and Appurtenant Structures 2019-03-25 14:00 4020
Procurement of Pre-qualification of Construction Contract: Construction of Polihali Transfer Tunnel 2019-03-26 14:00 4021
Appointment of Professional Service Providers (Consultants) 2019-02-01 12:00 SCM 008/2018/19
Appointment of service providers for the rendering of a complete revenue enhancement service, online and real time electricity vending, revenue protection, ICT backend and matering for the period of 36 months. 2019-01-31 12:00 LTLM2018-19/ BTO01
Appointment of a Panel of Service Providers for the Construction of Internals Roads and Storm Water in Wedela Extension 3 (Phase 3) with a CIDB Grading of 5CEPE/6CE or Higher 2019-02-01 12:00 ID(R&S) 11/12/1819
Tender for the appointment professional service provider to determine the fair valuation of MEGA's Investment Property Portfolio and the revaluation of land and buildings classified as Property, Plant and Equipment (PPE) 2019-02-14 12:00 MEGA/2018/05
Request for proposals for the appointment of a Registered Construction Health and Safety Agent for the construction of the Mpumalanga International Fresh Produce Market: Ancillary Buildings and Services 2019-02-13 12:00 MEGA/2018/04
Procurement of Development Partner, Morula Mixed Housing Development in Mabopane Tshwane 2019-01-29 11:00 NWHC 09/2018 DEV –PARTNER-2018
Appointment of a panel of attorneys for a period of 36 months 2019-02-08 12:00 22-2018/19
Request for 175 Combination Infall CK5 (1000 X 365 X 180) 2019-01-17 11:00 292297
Request for 65 pallets interlock pavers grey (80MM 25MPA) 2019-01-17 11:00 292300

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10 Features of a good Joint Venture Agreement

By W van Rooyen

www.howtotender.co.za

A Joint Ventures is a good business idea to compete for tenders if one does not have all the necessary expertise that are required from a specific tender. The thing to remember though is that you must have a solid Joint Venture Agreement in place for your Joint Venture. A good, rock solid Joint Venture Agreement will protect the participants to the Joint Venture.

 Here are 10 features that any good Joint Venture Agreement... Read More

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